At The Rodman Law Group, LLC, we’ve long been anticipating this moment – with the rapid expansion of outdoor cannabis growing methods, including greenhouses, the cost to produce cannabis has fallen significantly, but so has the price. Currently, wholesale prices of cannabis hover around $1300/pound, but that’s a far cry from the early days of the industry. We’ve heard of wholesale buyers purchasing pounds for less than $300, and we can’t say we’re surprised.
As Colorado’s market has become flooded with cannabis produced using more efficient methods, as well as outdoor and greenhouse methods, indoor growers are struggling to keep costs down to compete. Outdoor growers are also causing problems for themselves, overproducing in a way that floods the Colorado market and causes a significant decrease in prices. This is a problem because Colorado-grown cannabis cannot leave the state, and as such, is subject to Colorado regulations, which include mandatory sales in order to maintain licensure and allowed plant amounts (tiers).
It will be interesting to see how the technological advances in cannabis growing affect availability, whether the market becomes more seasonal, and whether or not greenhouses and outdoor growing become the expected norm as indoor growers are priced out of the market due to the high costs of energy.
Read more from The Denver Post here.
